Electric vehicles and hybrids increased their share of Australia’s used car market in 2025, even as overall sales activity stabilised following several years of disruption.
New data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows national used car sales reached 2.32 million vehicles in 2025, down 0.37 per cent compared with 2024. The marginal decline points to a largely stable market, with conditions continuing to normalise for both buyers and sellers.
While total volumes softened slightly, electrified vehicles continued to gain ground, reflecting changing buyer preferences and improved availability across the used market.
Electrified vehicles gain momentum
Hybrids, electric vehicles (EVs), and plug-in hybrid electric vehicles (PHEVs) all lifted their share of the used car market during 2025.
Hybrids recorded the strongest growth among electrified options, supported by lower running costs and wider availability across popular vehicle segments. EVs and PHEVs also increased their presence, as more near-new and ex-fleet vehicles entered the second-hand market.
The data indicates that buyers are increasingly considering electrified vehicles when purchasing used, particularly as pricing becomes more competitive and supply constraints ease.
Dealers increase market share
Dealer participation increased significantly during the year, with dealer-led transactions accounting for 48.6 per cent of all used car sales in 2025. This compares with 39.1 per cent in 2024.
AADA chief executive James Voortman said the shift reflects greater confidence in the dealer channel.
“The increase in dealer market share reflects growing consumer confidence in what purchasing through a dealer provides,” Voortman said. “Dealers are playing a more prominent role as consumers seek greater certainty around pricing, vehicle quality and after-sales support in a more balanced market environment.”
Dealers have also played a growing role in supplying used electrified vehicles, particularly those returning from fleet and novated lease arrangements.
Market enters a more stable phase
AutoGrab chief operating officer Saxon Odgers said the market had moved beyond the volatility and supply distortions seen in recent years.
“The Annual 2025 Automotive Insights Report confirms the used car market has moved beyond the distortions of recent years and into a more stable, sustainable phase,” Odgers said.
“What we’re seeing now is a structurally healthier market, where disciplined pricing, better stock availability and data-led decision-making are once again central to dealer performance.”
Odgers said improving supply chains and transparency had helped reset conditions across the sector.
“With supply chains normalising and transparency improving, the 2025 results provide a constructive foundation for 2026,” he said. “Dealers and OEMs now have a clearer line of sight to pricing, risk and inventory planning than at any point in the last five years.”
SUVs dominate as preferences evolve
SUVs continued to strengthen their dominance of the used car market in 2025, while passenger vehicles lost further share.
Electrified powertrains gained traction most strongly within SUV segments, aligning with broader consumer demand for versatility, efficiency and lower running costs.
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